Toyota Industries and DENSO to Establish an Automotive Air-Conditioning Compressor Manufacturing Company in Indonesia

Dec 8, 2010

KARIYA (Japan) - In response to the growing needs of the ASEAN auto market, Toyota Industries Corporation (TICO) and DENSO Corporation (DENSO) will establish a new automotive air-conditioning compressor manufacturing company in Bekasi, Republic of Indonesia in January 2011. The new company to be named "P.T. TD Automotive Compressor Indonesia (TACI)," will be jointly established by P.T. Astra Otoparts and Toyota Tsusho Corporation, as well as TICO and DENSO.

"TACI is our 5th overseas compressor factory, which will increase our supply capabilities to meet the growing needs of the ASEAN automobile market," said Masaharu Suzuki, managing officer in charge of TICO's Compressor Division.

TACI will succeed P.T. DENSO Indonesia (DNIA)'s compressor operation and will be based on DNIA's current operations. Production at TACI will begin in June 2011 and the new company plans to produce 1 million units in the first year of operation.

"In response to expanded customer demands in the ASEAN region, we intend to increase the annual manufacturing capacity of TACI from 1 million units to 1.6 million by the end of the fiscal year ending March 2016," said Akio Shikamura, senior managing director of DENSO's Thermal Systems Business Group.

Additionally, TACI will produce and supply compressors for the "Etios" compact car that was developed by Toyota Motor Corporation for the Indian market.

Profile of New Company

1.Name :P.T. TD Automotive Compressor Indonesia
2.Location :MM2100 Industrial Town, Bekasi, West Java Province, Jakarta, Republic of Indonesia (Inside DNIA Bekasi Factory)
3.Establishment :January 2011
4.Start of Operations :June 2011
5.Capital :187.3 Billion Rupiahs (approximately US$20.7 Million*)
6.Ownership :50.1 percent owned by TICO
25.7 percent owned by P.T. Astra Otoparts
20.0 percent owned by DENSO INTERNATIONAL ASIA PTE. LTD.
4.2 percent owned by P.T.Toyota Tsusho Indonesia
7.Investment :Approximately 2 Billion Yen (approximately US$23.7 Million*)
8.Business Activities :Manufacture of compressors for car air conditioners
9.Building Area :Factory area approximately 10,000m2
10.Employees :500 (when production has started)
11.Annual Manufacturing Capacity :1 million units per year (Fiscal 2011 plan)

Reference: Profile of P.T. DENSO Indonesia after Establishment of new Company

1.Location :Tanjung Priok, Jakarta City, Republic of Indonesia
2.Establishment :May 1975
3.Capital :2.345 Billion Rupiahs (approximately US$0.3 Million*)
4.Ownership :68.3 percent owned by DENSO INTERNATIONAL ASIA PTE. LTD.
25.7 percent owned by P.T. Astra Otoparts
6 percent owned by Toyota Tsusho Corporation
5.Business description :Manufacture and sales of car air conditioners, radiators, spark plugs, 02 sensors etc.
6.Employees :2,150 (as of June 2011)

* Exchange rates used are 9035.70 Indonesian Rupiah per one dollar and 84.27 yen per one dollar, at the end of November 2010 for convenience only. Billion is used in the American sense of one thousand million.

About Toyota Industries Corporation

With core-business materials handling equipment and car air-conditioning compressors occupying top world market share, Toyota Industries Corporation is a total equipment maker that is expanding its ventures in vehicles, engines, textile machinery and electronics.

For the fiscal year ended March 31, 2010 sales were 1.37 trillion yen. Toyota Industries Corporation is traded on the Tokyo, Osaka, and Nagoya stock exchanges. More information about Toyota Industries Corporation is available at www.toyota-industries.comTo out site.

About DENSO Corporation

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 34 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2010, totaled US$32.0 billion. Last fiscal year, DENSO spent 9.1 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. . For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.comTo out site.